Vietnam sets ceiling prices for generation of solar and wind energy

26 January 2023

On 7 January 2023, the Vietnam Ministry of Industry and Trade announced new ceiling prices for solar and wind energy in the country, pursuant to which Vietnam Electricity (“EVN”) can now negotiate tariffs in relation to transitional solar and wind energy projects in accordance with Circular 15/2022/TT-BCT (“Circular 15”).

Circular 15, issued on 3 October 2022, sets out a framework to allow EVN to establish tariffs for transitional projects in the solar and wind energy sectors which have previously not been subject to tariffs. The circular came into effect on 25 November 2022 and applies to wind power projects that executed a power purchase agreement (“PPA”) with EVN before 1 November 2021 but were not eligible for feed-in-tariffs (“FiTs”) by the end of 30 October 2021 and solar power projects that executed a PPA with EVN before 1 January 2021 but were not eligible for FiTs by the end of 31 December 2020.

The Vietnam Ministry of Industry and Trade subsequently issued Decision No. 21/QD-BCT on 7 January 2023, which sets out the ceiling prices for the solar and wind power projects that are the subject matter of Circular 15. The ceiling prices announced are set out below.